Gross Domestic Product and
Gross National Product (1/26 - 1/27)
GDP - total value of all product of all final goods and services produced w/in a country's borders in a given year- includes all production/income earned w/in U.S. by U.S. and foreign producers
- excludes productions outside of U.S. earned by Americans
GNP - total value of all goods and services produced by Americans in a given year
- includes production/income by Americans anywhere in the world
- excludes production by non-Americans even by the U.S.
GDP Calculations
GDP = C + Ig + G + Xn
C - Personal Consumption Expenditures, 67% of economy
Ig - Gross Private Domestic Investment, 17% of economy
G - Gov't Spending, 18% of economy
Xn - Net Exports (Exports - Imports), -2% o economy
Not Included in a nation's GDP:
1. Intermediate Goods: avoids double or multiple counting
2. Used/Second Hand Goods:thrift store
3. unreported business activities: tips
4. stocks & bonds
5. non market activities: babysitting for family
6. illegal activities: underground stuff and black market
7. Gifts/transfer payments: Scholarships, Social Security, Unemployment
Thank you, Max! I was absent the day that Mrs. McCartney gave these notes in class and I used yours for reference! It was really helpful to me and the worksheets that I had to complete in order to make up for the days that I missed! I like the fact that you included a picture so that I can get a better understanding of the GDP formula!
ReplyDeleteOnce again, thank you for everything! I appreciate it.
I had a difficult time doing worksheet that dealt with the Gross Domestic Product, so when I looked over your blog I got a better understanding that what I had before. I believe if I looked at it earlier would have done so much better on assignments the first time around.
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